Daily Morning Note – 2 October 2018

WEEKLY MARKET OUTLOOK WEBINAR

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YOUR PHILLIP SUMMARY

Alas, the U.S., Canada and Mexico have struck a revised trade deal to replace the Nafta agreement. U.S. stocks rose, while Asian equities are looking at a mixed open. On the other hand, on relations between the US and China, the Pentagon has canceled Defense Secretary James Mattis’ visit to China later this month. Oil jumped to the highest level in nearly four years as a slowdown in American drilling added to concern over supply losses from Iran and Venezuela. The Nikkei 225 Stock Average also soared to its highest in almost 27 years, driven by retailers, drugmakers and other more defensive shares.


RESEARCH REPORT

Singapore Banking Monthly: With great interest rates comes great pricing power

Recommendation: BUY, Analyst: Tin Min Ying

– Singapore’s domestic loans rose 5.6% YoY in August.

– Loans growth in Hong Kong slowed to 8.4% in August, the slowest in almost two
years.

– 3-month SIBOR rose to a new high in September as expected.

– Maintain BUY for the Singapore Banking Sector.

Nico Steel Holdings Limited – The electronics metallurgist

Analyst: Phillip Research Team

– Announced positive profit guidance. A significant increase in earnings expected
for 1H19 results.

– Removed overhang in convertible bonds priced at S$0.001, as conversions have
ended.

– Transitioned away from low margin commodity metal distribution to
customized alloys with patented electroplating and mechanical technology.

Phillip SING Income ETF – Highlights of the newly launched SING Inc ETF

Analyst: Phillip Research Team

– Access to 30 high-quality Singapore Listed Stocks

– Full replication of Morningstar® Singapore Yield Focus Index

– Strategic Beta stocks selection (Enhanced version of STI selections)

– Weights for individual stock capped at 10% (Well diversified)

– Semiannual distribution – June & December


BREAKING NEWS

Crude Oil jumped to the highest level in nearly four years as a slowdown in American drilling added to concern over supply losses from Iran and Venezuela.

President Donald Trump celebrated a trade deal with Canada and Mexico to replace Nafta as a “historic” win that vindicated his strategy of threatening tariffs on trade partners. Trump called the accord “the most important trade deal we’ve ever made by far.”

Phillip Capital offers new ETF for income investors. A new exchange traded fund will be listed here on Oct 29, offering investors instant exposure to a basket of 30 Singapore stocks that have been selected for business quality and sustainable dividends.

The Variable Capital Companies Bill, approved by Parliament on Monday, aims to boost the fund management ecosystem by encouraging funds to both incorporate and operate in Singapore.

Singapore home prices flatten in Q3 as curbs arrest gains. The July cooling measures are starting to show in the moderation in the pace of the QoQ increase of the official private home price index: Growth was 0.5 per cent in the third quarter.

Source: SGX Masnet, Bloomberg, Reuters, The Business Times, Channel NewsAsia, Phillip Securities Research

Clients of Phillip Securities can keep updated with Country Strategy and Singapore Sector Reports by logging into: www.poems.com.sg > STOCKS > Research

Read the research report(s), available through the link(s) above, for complete information including important disclosures

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